The short answer: three exits, all through occupancy — you live there more than half the year, an immediate family member does, or a 12-month arm's-length tenant does. LLCs, trusts, abatements and listings-without-leases do not work. Every exemption is claimed with documents by your letter's deadline.
The pied-à-terre surcharge has exactly three ways to $0 — and a longer list of things owners believe will work that don't. Every exemption must be claimed and documented, not assumed: DOF's published application deadline is October 6, 2026 for all property types. Here is each exemption in depth, with the documentation that actually satisfies DOF's final rules.
Exemption 1 — It's your primary residence
A home you occupy more than half the year as your primary residence owes no surcharge, whatever its value. What matters for a given year is your status on the taxable status date — January 5 of the year before the fiscal year: DOF looks at whether the home was your primary residence as of that date, and moving in afterward does not change the bill for the current fiscal year. When DOF's records say otherwise and a notice arrives, you have 30 days to rebut with the documents the final rules specify: your most recent state or federal income tax return showing the address, or a combination of two documents — a New York State driver's license or non-driver ID, a voter identification card, or other documentation DOF deems acceptable. Assemble the folder before you need it.
Exemption 2 — An immediate family member lives there
A unit occupied more than half the year by an immediate family member as their primary residence is exempt. The statute's list is specific: spouse, child, sibling, parent, grandparent, grandchild. Your daughter living in the apartment full-time qualifies; your cousin, your friend, or your daughter using it on weekends does not. Document the family member's occupancy the same way you would your own — their tax return, license or voter registration at the address.
Exemption 3 — A real 12-month lease
A unit under a bona fide arm's-length lease of at least 12 months to a tenant who uses it as their primary residence owes nothing. Every word carries weight: arm's-length means a market-rate lease to an unrelated tenant — installing a friend at a nominal rent fails; 12 months excludes seasonal and short-term arrangements; the tenant must be a natural person making it their primary home — corporate housing doesn't qualify; and the lease must actually exist — a unit listed for rent but sitting empty remains taxable. Availability is not occupancy, and intent is not a lease. With Manhattan rents at or near record levels, this is the exemption that most often beats the surcharge on pure math — the break-even framework is here.
What does NOT work
| The theory | Why it fails |
|---|---|
| "I own it through an LLC" | The statute attributes ownership through LLCs, partnerships, corporations and trusts to the people behind them. If no single person holds a majority of the entity, the unit can be taxed regardless of who lives there — unless a qualifying tenant occupies it. |
| "My LLC is owned by another LLC / a trust" | Tiered structures are disregarded — the look-through continues until it reaches natural persons, and the analysis runs on the entire interest the entity holds. A holding company adds no protection. |
| "I have a condo abatement / STAR" | The statute says existing abatements, credits and exemptions do not apply against the surcharge. It stacks on top of your current bill. |
| "It's listed for rent" | Taxable. The exemption requires an actual executed 12-month arm's-length lease — not a listing, not availability, not intent. |
| "I'll paper a lease to a friend at $1" | Not arm's-length — and dangerous. DOF's rules penalize false documentation at 50% of the surcharge on top of the reimposed tax. |
| "I use it 5 months a year, that's almost half" | The line is more than half the year as a primary residence. Heavy personal use of a second home is precisely what the statute taxes. |
Questions owners ask
What are the exemptions to the NYC pied-à-terre tax?
Three: (1) the home is the owner's primary residence, occupied more than half the year; (2) an immediate family member — spouse, child, sibling, parent, grandparent or grandchild — occupies it more than half the year as their primary residence; (3) the unit is under a bona fide arm's-length lease of at least 12 months to a tenant using it as their primary residence. Each must be claimed and documented; DOF's application deadlines are October 6, 2026 for all property types.
Does owning through an LLC avoid the NYC pied-à-terre tax?
No. The statute looks through LLCs, partnerships, corporations and trusts to the natural persons behind them, tiered structures are disregarded, and the analysis runs on the entire interest the entity holds. If no single person holds a majority, the unit can be taxed regardless of who lives there unless a qualifying tenant occupies it.
Does renting my NYC apartment exempt it from the pied-à-terre tax?
Yes, if the lease is bona fide, arm's-length, at least 12 months, and the tenant — a natural person, not a company — uses the unit as their primary residence. A unit that is merely listed for rent, rented short-term or seasonally, or leased below market to a friend remains taxable.
Do condo abatements or STAR reduce the pied-à-terre surcharge?
No. The statute provides that existing abatements, credits and exemptions do not apply against the surcharge — it stacks on top of the regular property-tax bill.
Which side of the line are you on?
Free emailed report: your unit's official DOF market value, whether the surcharge applies, and which exemption path — if any — realistically fits your situation. Usually within the hour.
Check My Unit — FreeClaiming: deadlines and mechanics
- Application deadline: October 6, 2026 — all property types.
- After a notice: the 30-day rebuttal window runs from your notice — see the step-by-step.
- Get the paperwork right: false primary-residence documentation draws a 50%-of-surcharge penalty; misleading valuation submissions up to 300% of the understatement (capped at 50% of the surcharge).
- Each year stands alone: the surcharge applies for any year the property is not a primary residence — an exemption established this year is not permanent, and a lease that lapses puts you back on the roll.
Disclaimer. This page is educational information from Conquest, a licensed New York real estate brokerage. It is not legal, tax, or accounting advice, and no advisory relationship is created by reading it. Deadlines and figures reflect DOF's published rules and roll as of the "last updated" date above.